Entrepreneur primarily consists of four main elements:
Creativity and innovation: It forms the core of entrepreneurship that enables the entrepreneurship to think entire new ways of working. Key part of entrepreneurship is to identify opportunities that no one has noticed earlier. Such opportunities need not be large; these can even be small ones. Creative people are receptive to new ideas generated by others.
Ability to apply the creativity: Besides the entrepreneurs have an ability to apply the creativity to business problems. They understand the people and the environment around them. They can effectively martial resources for the same. It is not enough to think creativity, successful entrepreneurship demand thought is translated in to action and result. They need an ability of getting things done.
Change: They have a sound belief in their ability to change the status que-the ways of things are being done presently. With their belief in their ability no change the way things the being performed.
Creating value: Entrepreneurs focus on creating value by doing things in cheaper, better and faster manner.
Thus, entrepreneurship can be defined as creation of value through people working together to implement an idea through the application of drive and willingness to take risk
CHARACTERISTICS OF ENTREPRENEUR
The main features of entrepreneurship are:
Economic activity: entrepreneurship is basically an economic activity because it involves creation and operation because it involves creation and operation of a new enterprise. it is primarily concerned with satisfying the needs of customer with the help of production and distribution of goods and services.
Innovation: entrepreneurship is an innovative and a creative activity.
It involves doing things in a new and better way. Entrepreneurship is an automatic and creative response to change in the environment. As an innovator, entrepreneur has to:
- Introduce new things or goods with which the customer is not yet familiar;
- Introduce new methods of production which is not yet to apply in the particular brand of manufacturing;
- Find out a new source of raw material;
- Find a new market or customers which are not yet familiar with the product.
A businessman cannot be entrepreneurs who simply behave in old and traditional ways. An entrepreneur has to take innovative steps and it decisions under uncertainty and risk situation.
Decision-making: Decision-making activity of entrepreneur is one of the important features of entrepreneurship. Entrepreneur takes decisions regarding activities of the enterprise. he decides about the type of business to be done and the ways of doing it. An entrepreneur has to make decisions under uncertainty and he has to take actions with unknown and unpredictable results.
Function of high achievement: Entrepreneurship is a function of high achievement people having high need for achievement is more likely to succeed as entrepreneurs.
Organization building: Entrepreneurship implies the skill to build an organization. Organizational building is the most critical ability for entrepreneurial development. This skill means that one can build an organization effectively by delegating responsibility to others. Entrepreneurs need to be good leaders and excellent administrators to be a successful organization builder.
Managerial skill: Managerial skills and the leadership are the most important characteristics of the entrepreneurship. Entrepreneurship required the tactful handling of various situation involving risk and uncertainties.
Risk bearing capacity: Risk is the part and parcel of entrepreneurship. An entrepreneur assumes the uncertainty of the future. It is always risky to start a new enterprise and doing something new and differently. The function of entrepreneurship are greatly influenced by various risky situations and factors like increase in competition, change in customer need and taste, shortage of aw material, change in Government policy, change in technology. Thus, entrepreneurship needs to be a risk taker, not risk avoider.